Profit-maximizing firms increase production up to the point at which the last unit of the variable factor employed adds
A)nothing to marginal cost.
B)nothing to marginal revenue.
C)positive economic profits.
D)just as much to revenue as to profit.
E)just as much to revenue as to cost.

Question

Quizplus · Accepted Answer

Firms maximize profit by producing up to the point where marginal cost equals marginal revenue, meaning the last unit adds as much to revenue as it does to cost.

Profit-Maximizing Firms Increase Production Up to the Point at Which